FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Adelaide Small Business Loans
Let me know what you think of the Adelaide Small Business Loans
Adelaide unsecured loans provides the range of $5,000 to $100,000 with terms between 3 and 24 months and cash flow-friendly repayments that are either per day or weekly.
How is the Unsecured Loan different from an ordinary company loan?
You can apply for this Small Business Loan in under 10 minutes via the internet or by phone. You will receive an immediate response, and have the funds in your account in 24 hours. Traditional company loans refer to an annual rate of interest along with other charges and fees. This business loan is a cash-based loan and you’ll be aware in advance of the amount you will have to pay, including the interest, fees and charges. Then, it is broken down into weekly or daily amount to be paid back.
What can be the Small Business Loan be used for?
A Small Business Loan can be used for nearly any company need, such as the management of cash flow, company remodeling, marketing, to purchase inventory or new equipment, for general working capital and so much more. The loan cannot be used to fund personal expenses.
About the Larger Adelaide Business Loans
What is the Larger Adelaide Business Loan?
The Larger Business Loan is a larger size loan to aid in company expansion opportunities. Loans range from $100,000 to $500,000 over a fixed term for up to 36 months. Repayments are either weekly or fortnightly depending on your cash flow.
How is the Origination Fee calculated?
This Larger Business Loan has an Origination Fee which is determined at 2.5 percentage of the amount of the loan.
Am I eligible for the Larger Business Loan?
To qualify for a loan in this amount the business needs to have been operating for a minimum of 3 years with an annual turnover of at least $700K. You must be a New Zealand Citizen (or Permanent Resident) who is over the age of 18, own a New Zealand business (with a valid NZBN/IRD) and be able demonstrate at minimum 12 months of business.
What can the funds be used for?
A larger company loan can be used to fund almost all business use, including business renovations, to purchase equipment or inventory for general working capital and so much more. The loan cannot be used for personal purposes.
Is the Larger Business Loan a secured loan?
Asset security is required to obtain funding above $150,000. This is as a result of an charge over assets, and could include registering this in the PPSR or making a caveat.
A personal or director’s guarantee is a guarantee to repay credit that is generally in nature rather than defining security over an asset. The person signing the guarantee is personally liable if the business creditor is unable to make the repayment.
The Personal Property Securities Register (PPSR) is an online central register that is operated by the New Zealand Government. It contains security interests granted to individuals who own personal property (including the assets or goods). The PPSR allows priority over personal property to be assigned according to the date the security interest that is registered.
Caveats are legal document lodged to provide the public notice of a legal claim against a property.
What exactly is a preapproval without Credit Check?
If you’re seeking the Larger Business Loan that exceeds $250,000 we may be able to provide an initial pre-approval that will help smooth out the process. We might be able to apply for this without a credit check, and within 6 hours of your initial application. The pre-approval is based upon an initial evaluation that involves the answer to a series of financial well-being questions. This is not an offer of credit or guarantee of finance. A conditional approval is subject a full credit assessment and any offer you may receive may be subject to different conditions.
The application process
Do I have the right to receive funds?
You can apply for a company loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are over the age of 18 and own a New Zealand business (with a valid NZBN/IRD)
- must show at least six months worth of trade (for for the unsecured loan $5K – $100K) or 3 years of trading (for the Larger Business Loan $100K to $500K)
How do I apply?
The application process is quick and easy. Complete the online form within a couple minutes, and a dedicated company credit specialist will call you to help you.
For a loan of up to $100,000, you’ll need identification details (valid Driver’s Licence) along with an NZBN/IRD that is valid and at least six months of bank statements.
Otherwise, for larger loan sizes, you’ll need:
$100K-$250K: Application requirements, including credit consent, 6-12 months of bank statements, IRD statement (if the loan is greater than $150K).
$250K-$500K: Details for application including credit consent as well as 12 months of bank records, IRD statements, last 2 years finalised financial statements, in addition to interim financials from the current financial year including Aged Payables, Aged Receivables summaries.
How fast will I get a decision?
For an unsecured loan ($5K to $100K) we can often offer an answer within an hour if you apply during standard company time and you allow us to use the advanced bank verification system link to instantly verify your bank information online. If you choose to send us copies of your bank statements , we are able to provide a decision in just 1 business day.
For the Larger Business Loan ($100K to $500K) we might be able to provide you with conditional pre-approval within about 6 hours. After you’ve signed your pre-approval, turnaround times are approximately 2-3 days to receive final approval. However, this can be quicker based upon the circumstances for each application. Certain deals have been approved in less than 24 hours.
The quickest method for you to apply is make sure you apply during normal company hours. Also, allow us to use the advance bank verification to instantly verify your bank information online. If you decide to upload documents from your account accounts, it may take a bit longer.
What is the time frame to receive the cash?
For the Small Business Loan ($5K and up) We can usually provide an answer in just one hour if you apply at standard business hours and permit us to make use of the advanced bank verification system to instantly verify your bank’s information online. If you decide to send us copies of your bank statements, we will be able to provide an answer in just 1 business day.
For the Larger Business Loans ($100K to $500K) we might be capable of offer you with conditional pre-approval within about 6 hours. Once you’ve signed the pre-approval document, you will need to wait approximately 2-3 days to receive final approval. However, this could be shorter based on the circumstances of each application. Some transactions have received approval within just 24 hours.
The most efficient method can be ensure you apply during standard business hours. You can also allow us to use the advanced bank verification system link to verify your bank information online. If you opt to send us the copies of bank statement, it may take a bit longer.
How much can I borrow?
We offer loans that range from $5,000 to $500,000. When you submit an application for a particular amount, we look at a variety of variables in order to assess how much we can lend you health that is your company as well as the amount of the repayments your company can support. The amount you receive from your loan will be contingent on the specifics for your business.
When you apply for a specific amount we consider a variety of variables to assess the well-being for your company and the amount of repayments your company is able to afford. The total amount of the loan will be determined by the particular circumstances that are unique to your company.
Fees & repayments
How much do you charge for a company loan?
If you decide to request the business loans, we’ll assess the risk assessment that you have for your company and provide you with a customised offer, including the loan amount, the terms and interest rates. It is a company loan is an upfront priced loan so you will know in advance the total amount to be paid, including any interest rates, fees or charges.
What determines the amount I’m charged?
Business loan interest rates depend on several factors like the amount of money borrowed, the business assets the money are used to purchase in addition to the industry that the business is in, how long the business has been operating and how long the business has sufficient cash flow to cover the loan, and the general health as well as creditworthiness business.
What are the cost?
There are no hidden costs with our business loans, and you’ll know precisely how much you’ll need to pay, and when, starting from the very first day. There’s not any compounding interest and no additional fees (as long as you are able to make your payments in time).
We don’t charge an Application Fee. You can apply for a loan with without any upfront costs or commitment to apply.
The Origination Fee includes the expenses associated with establishing and managing the loan. The only way to pay this fee if you proceed with the loan. The Origination Fee for us is 2.5% of the amount of the loan.
Do I have the option of paying off the loan early?
You can repay the entire amount of the loan at any point in time.
If you choose to take this route, please speak to our friendly company lending experts. They’ll provide you with details on repayment along with an early payout estimate. The figure will be calculated as the sum of the principal amount remaining and accrued interest to the time of early payment, plus 1.5 percent of the remaining principal and any outstanding fees.
What is the process for repayments?
To make sure that you don’t miss repayments and to fit in your cash flow schedule, we provide repayments either daily or weekly. These are automatically deducted from your designated business account.
Security & privacy
Will my information be protected?
Protecting your information, and being transparent about the ways we gather, use, exchange and protect your information, is of paramount importance and an integral element of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We use industry recognised encryption standards to protect your sensitive, personal financial information and our funders are ISO 27001 certified for our commitment to the security of our clients as well as their privacy. We employ a highly sophisticated banking verification system to immediately verify your bank account details online so we can offer quick responses.
About business loans
What is asset-based borrowing (a secured loan)?
Asset-based borrowing is when an business owner makes use of an asset that they own to get the funding. The asset can be either a personal asset like the family home or a business asset such as a truck or piece of equipment.
The majority of lenders, including the big banks, tend to guarantee loans against assets. If you are having difficulty paying back the loan, then the asset could be sold by the lender. In essence, it’s means of securing new funding using the worth of the asset you already own.
Are I require security for an company loan?
For loans that exceed $150K, no asset security is required prior to the loan’s access, however we do require an individual guarantee. As long as you follow the terms of your loan (as stated in your loan contract) Asset security will never be needed. For loans of over $150K typically, you will need an individual guarantee and security in the form an asset charge.
